Spanish startups seek the approval of Sandbox activities to prevent their blockchain projects from being outside the legal framework.
In Spain, startup companies are executing strong measures of pressure and also are waiting for the approval of the so-called “sandbox”. This is a controlled space for the authorities to test blockchain technology and all the aspects related to this sector.
Once this space is approved, companies that seek to use blockchain technologies will be able to define their guidance in the development of innovative tools. This would help facilitate the financial processes these companies need to improve. Likewise, it will help determine the potential of blockchain technology and verify the best ways to strengthen it.
According to local media reports, companies that hurry the approval of a bill to ensure a line of action in their blockchain initiatives, have signed, together with associations, a petition manifest to the local government, in order to avoid bureaucratic methods.
Among those who signed the petition are the Spanish Association of Fintech and Insurtech (AEFI), the Spanish Blockchain Association (AECHAIN), the Observation of Business Ethics, the Foundation for Financial Innovation and the Digital Economy (FIFED), the Spanish Association of Startups, The Spanish Association of Business Finances (ASSET), the Association of Financial Users (ASUFIN), and the Cotec Foundation for Innovation.
These associations are looking for ways to advance in legal procedures so that the Sandbox is not delayed more. They want to test blockchain technology.
For this, they argued that if their approval continues to be delayed it could result in the loss of more than 5,000 jobs, in only two years. In addition, Rodrigo García de la Cruz, who is AEFI’s CEO, projected that this fact could affect the crypto-industry, and an approximate loss of about 1,000 million euros in investments to this technology.
For local businesses, the legislation may be incomplete. This is something that could lead to certain failures and could harm their blockchain projects. This is because companies are not clear about the legal limitations that would regulate this technology type of technology in Spain. They do not want to spend time developing a tool that in the near future could be cataloged as illegal.
In this way, for these startup companies, there is a Sandbox, a controlled environment to develop their projects with the governmental observation and the approval of the authorities that define the regulatory framework.
Although the approval of this testing environment is already defined so that startups can develop their projects with government supervision, it has not yet been formalized, since the installation of a new government is expected.
The initiative to regulate these technologies is important, as well as the government’s motivation to advance a legal framework. An example of this is the action of the congress of Spain, which in the middle of last year, raised the idea of looking for examples to regulate cryptocurrencies and all the technologies necessary for their livelihood, like blockchain technology.
By María Rodríguez